Research On The Evaluation Of Steel Enterprises In China

At the value management time, how to maximize the company's value is 'becoming the focus problem in business and theory. Value management is based on the value concept and the valuation. Aim to maximize the company's value, making and adjusting the enterprise strategy according to the change of circumstance properly, allocating the resources reasonably, which is the dynamic management procedure for the company's creation of value. And the enterprise valuation is the base and start of value management. Business valuation also called corporation valuation, taking the enterprise as a whole, evaluates its value for exchanging in the future. It is abided by the Principle of maximization of enterprise value business strategy selection and asset appraisal will develop toward it.Nowadays the research on valuation of modern enterprises is of momentous current and theoretical significance in the process of deepening enterprise reform in China. Enterprise valuation is not only a necessary tool for outside investors to analyse investment, but also a means for managers inside enterprises to use. Due to our country's national conditions, the value assessment theory which established above the west developed capital market is not fully apply to China's enterprises.The steel industry is closely connected to the sustainable and harmonious development of Chinese economy. Steel enterprises, especially the listed enterprises, their value has attracted more attention by investor, consumer, enterprises and governments. Especially with the approaching issuing of "steel industry M&A act", China's steel industry restructuring and efforts to adjust industrial layout is gradually increasing. Bigger steel companies became the primary objective of development strategies. In such a background, how to evaluate iron and steel enterprises will make a special significance. This article attempts to pull in the popular method RIM abroad for Chinese steel enterprises and use as a aid for the investors to invest in steel stocks and the evaluation of acquired companies in mergers and acquisitions. RIM follows the hypothesis of continuous operating, so it has the same disadvantage of income discount methods. According to this, this paper has improved the original RIM. Firstly, it brings a special variable to the model, so the improved RIM is much more suitable to the steel industry. Next, this paper transforms the original RIM to a linear one. In this case, it is unnecessary to follow the endless discount of lasting income. The analysis of the result shows that the improved RIM is much more maneuverability and reasonable to the enterprise's valuation.This article mainly uses the comparative analysis and the real diagnosis unify research technique. The full text divides into four major parts:the first part made an overview assessment of the enterprise value which is the theoretical basis of the full text. The second part described several mainstream's enterprise valuation methods in our country (such as property value approach, market comparison approach, income approach), pointed out their limitation which exists in the utilization. The third part first introduced the RIM estimate's method, and analyzed its rationality, proved we should choose this kind of method to our country iron and steel industry's value in theory. The forth part is the empirical analysis and the authentication of model. The last part is about the conclusion and the inadequate of this paper.